The race for global dominance in the rare earth and critical minerals supply chain
The Philippines, a resource-rich nation, should not sacrifice its own environment and marine ecosystem as nations scramble to mine and acquire rare minerals, Manuel Mogato writes.
Manuel Mogato | June 28, 2026
MANILA — The world has changed.
The geopolitical balance of power is shifting. The old powers are losing influence and being replaced by emerging ones.
From spices, gold, oil, and radioactive materials in the 16th to the 20th centuries, the 21st century is now scrambling for rare earth and critical minerals to run computers and Artificial Intelligence to rule the world.
Soldiers are no longer sent to battlefields, but robots and unmanned vehicles are taking on the fight. Cheaper technologies trumped expensive and modern missiles.
Stronger states are adapting to asymmetrical warfare waged by smaller, weaker states, as shown in the Middle East and in Eastern Europe. (Also read: Drones & chokepoints: Lessons for PH from Ukraine, Iran)
Future wars will be fought remotely with fewer humans as combatants. However, the destruction and death will be more extensive and devastating on innocent civilians, civilian infrastructures, and property caught in the middle of the new global power game. (Also read: Strengths and Vulnerabilities in Today’s Regional Hotspots)
For decades, the United States dominated the world after the collapse of the former Soviet Union in the 1990s, remaining as the sole superpower.
Its Armed Forces are superior to those of the rest of the world, with 11 carrier strike groups prowling the seven seas.
But the 21st century saw the decline of the United States’ military and economic power and the rise of emerging global powers, such as China, France, Germany, India, and Japan. (Also read: Canada’s expansion in the Indo-Pacific region)
From the late 1980s, Beijing has been quietly building its military-industrial complex, backed by a robust economy and advances in the high-technology industry.
China has emerged as the world’s leader in the rare earth and critical minerals sector, the engine behind advanced military and civilian businesses, including renewable energy, electric vehicles, and rocket and missile systems.
China has gained significant geopolitical and economic leverage after establishing global dominance in the rare-earth supply chain, from mining and refining to magnet production.
It controls over 90 percent of the supply chain, and the United States and its allies were dependent on China for critical rare-earth materials, creating supply chain vulnerabilities, economic risks, and potential threats to national security.
How important are rare earth elements and critical minerals?
These are important components of computer chips that run America’s advanced F-35 fighters and nuclear-powered Virginia-class submarines.
Apart from defense systems, rare earth elements and magnets are key components essential to electric vehicles, robotics, and renewable energy infrastructure.
Thus, the United States and its Western allies have established their own rare earth and critical minerals supply chain to reduce dependence on China.
In December 2025, the US and several of its allies, including Australia, Israel, Japan, Singapore, South Korea, and the United Kingdom, created Pax Silica to secure the supply chain for advanced technologies such as rare earth elements, artificial intelligence, and semiconductors.
The Philippines and other states joined later, and the US undersecretary for economic affairs, Jacob Helberg, who said the 21st century runs on computers and minerals that feed them, personally visited the Philippines and Singapore in May to emphasize the importance of Pax Silica as the US builds a new economic security order.
Washington is also spearheading the creation of Project Vault to build storage of critical minerals on US territories to ensure a steady supply of raw materials.
It also has the Forum on Resource Geostrategic Engagement (FORCE), contracts for minerals before they are extracted, setting favorable floor prices for minerals.
It ties countries that accede to the agreement with the US, which manipulates prices and does not allow countries to choose their partners.
As the US challenges China’s global dominance in the rare earth elements and critical minerals supply chain, Washington and its allies are taking the competition further, developing the ability to mine underwater mineral deposits, even though the International Seabed Authority has no clear rules, including deep seabed mining standards.
For instance, the US and Japan plan to implement a joint project this year to mine critical raw materials in the seabed around Minamitori Island in the Pacific Ocean.
It violates a decision by the International Seabed Authority as well as the provisions of the United Nations Convention on the Law of the Sea (UNCLOS) and the UN Sustainable Development Goals.
The plan could set a precedent for the uncontrolled plundering of the ocean’s seabed resources.
The US is willing to disregard safety measures to protect the environment and to take the lead in seabed mining.
China has ignored environmental protection to mine rare earth elements and critical minerals to dominate the world, unlike Australia, Canada, and the US, which follow strict environmental rules in mining.
The Philippines must strictly adhere to UNCLOS, UN Sustainable Development Goals (SDGs), and the Seabed Authority to protect the world’s ocean ecosystems from destructive mining.
For instance, there could be irreparable damage to the marine ecosystem when toxic clouds, created by deep seabed mining, spread hundreds of kilometers, and inevitably into fish, which could poison the local population.
The Philippines must stand against deep-seabed mining until rules are established and join a coalition of coastal states supporting a moratorium on deep-sea mining.
As an archipelagic state, the Philippines must fiercely protect its marine ecosystem, including the seabed.
It should learn from African states, which blocked the adoption of a seabed mining code in March this year and banned commercial mining in 2026.
Only technologically developed states, such as China, Japan, and the United States, will benefit from deep-sea bed mining. They have started robotic extraction at a depth of four to five kilometers.
The International Seabed Authority still has no rules and no adequate monitoring of these destructive mining practices.
However, the environmental risk will be shared by all the states, including the Philippines. (Also read: Pax Silica: Is the Philippines willing to give up its sovereignty in Clark?)
A fund should be set up to compensate for economic losses. It should benefit developing states, and royalties from global mining firms are needed. Their contributions should go to the international community’s environmental concerns.
Finally, the International Seabed Authority must conduct credible monitoring and inspections.
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